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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: RealMuLan who wrote (53921)10/3/2004 4:38:01 AM
From: energyplay  Read Replies (2) of 74559
 
Hi Yiwu - Thanks for getting the numbers -

Three items -

1) Prices are set at margin. Drop in consumer volumes can erode selling prices quickly.

2) How profitable are sales to the US sales to other countries ?
I would expect that the US and Japan and some parts of Europe buy the more expensive and more profitable goods. I would expect many facotries make the biggest slice of profits on ssles into the US.

Flip side of this is that US companies may have good technolgy and marketing, but really high labor cost. For a company like Nike or Apple to get part of manufacturing from China make sthem very competitive with say some European companies, who were hoping high labor costs would keep US firms from taking market share.

3) look at China's US trade surplus: +136.48 Billion.
look at China's deficit on ALL trade: -41.47 Billion.

Cut out US trade, the defict goes to 178 Billion, almost 15% of total imports.

So far, US China trade has been very profitable for both parties. (I expect the Europeans are ticked off at this - so I would carefully evaluate negative articles from European publications)
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